Ethan Lin, CEO and co-founder
Klook has only been on the scene since 2014 but - with almost $300 million in so far - it has become the most heavily funded startup ever in tours and activities.
Lin and fellow finance consultant Eric Gnock Fah famously met their tech co-founder Bernie Xiong via LinkedIn, launching the company in Hong Kong.
Even by the standards set by the likes of Airbnb and Uber, Klook’s shift into the mainstream of tours and activities has been rapid. Is there a single element that you could credit with that rise so far?
While there are a lot of factors impacting any company’s growth, Klook’s rapid rise reflects the massive demand to bring the tours and activities sector into the digital world and reduce purchase friction for always-on, mobile-first travelers.
We adopted a mobile approach from very early on and it has been a game changer, and absolutely contributed to our rapid growth.
Similar to how people used to hail a cab but can now call a rideshare service with a tap of their finger, Klook entirely changes the way that people look for and book travel experiences.
With Klook, people can eliminate waiting in long lines, more easily book experiences without the hassle of frustrating currency exchanges and overall minimize complication to their travel plans since Klook can be a one-stop platform for their itinerary.
There is a need in the market for a better purchase experience and services when it comes to booking in-destination tours and activities, and Klook has the best global offering.
Our platform offers travelers a wide variety of experiences to choose from and a seamless process of exploring, purchasing, and redeeming.
These experiences range from skip-the-line attraction tickets to a night safari in Singapore to food tours in Italy to hot-air balloon flights in Dubai.
We even recently partnered with Rail Europe to offer train services to our users, in addition to our extensive offering for Asia railway network.
Occupation
co-founder and CEO
Klook and its nearest competitor (in terms of profile) have attracted a lot of investment capital. What has been the company’s strategy around needing or wanting to raise so much?
Speed in the new age is imperative. Capital is key to fast expansion and allowed us to build the business at a quick pace.
We wanted to raise as much capital as possible to gear up Klook’s tech innovation and global expansion.
And we do that through partnering with more tours and activities operators and assisting them with digitizing their products for travelers around the world.
In terms of investment, how much of that capital goes to tech and to marketing (the latter being where most commentators think it’s going)?
Both are important investments. We are doubling down on technology to increase efficiency and connectivity.
We have developed our own merchant system, a widely recognized solution that provides an efficient booking management system, instant user feedback, and enables QR code redemption.
We ensure the smoothest possible Klook experience for every traveler that uses our platform and continue to build and optimize that experience for users and partners.
The real investment is in building a product that consumers love - from technology to user experience to customer service.
Given the profile of the deals, can you explain what was your reaction when you learned of the FareHarbor-Booking Holdings and then, 24 hours later, the Bokun-TripAdvisor acquisitions?
Last year was quite eventful for the travel and activities industry, and we saw it as a sign of both growth and consolidation for the industry overall.
We are pretty excited to see the industry getting more attention, not to mention resources to truly transform the market.
If you could solve overnight one of the major issues that still exists in the tours and activities (supplier tech, consumer connectivity, etc.), what would you choose?
The lack of instant booking for travel activities. Making it possible starts with supplier technology.
Strong supplier technology allows merchants to streamline their operations more efficiently, eliminating the cumbersome process of managing schedule, inventory and manual confirmation with customers, and allows them to focus on what matters most - the experience itself.
At the same time, instant booking fits in with modern travelers’ spontaneous purchasing habits.
What would you say is the biggest threat to the growth of tours and activities that is projected over the next few years?
The biggest threat to the industry’s growth is also its biggest opportunity - properly identifying the specific needs of each traveler considering the wide variety of activities offered in the market.
As the diversity of travelers continues to grow, industry operators struggle to understand the different needs and expectations of these new audiences.
Speed in the new age is imperative. Capital is key to fast expansion and allowed us to build the business at a quick pace. We wanted to raise as much capital as possible to gear up Klook’s tech innovation and global expansion.
Ethan Lin - Klook
The disconnect between tours and activities operators and new travelers could create a tremendous gap between supply and demand if there aren’t resources available to help.
It’s important to make the best possible use of data insights to solve this disconnect between tours and activities operators.
To do so, companies in our industry should to be open to adopting new emerging technologies such as machine learning and artificial intelligence, in order to leverage data insights and deliver experiences that modern travelers crave.
Is there a blueprint that you followed from another successful travel startup for when you and your two co-founders created Klook?
It is hard to follow any blueprint as each sector and region are very different.
We were fortunate to have an “outsider” perspective - that is, we were avid travelers but had limited travel industry experience.
This actually helped us to look at the sector from a purely consumer perspective. With this open mindset, we were able to learn from others' successes and even failures.
You’re ultimately the CEO, but how do you and your co-founders decide collectively on Klook’s strategy and any issues that arise during operations?
It’s important for the team to share the same vision and be on the same page. Once we are aligned on direction and next steps, I believe in entrusting the other leaders of the company in their respective functions and fields.
Klook is perhaps the most successful travel startup to have come out of Hong Kong. Tell us about the startup environment that created it and the general ecosystem for new businesses there.
Klook is a great success story for Hong Kong and illustrates a thriving startup environment that’s often overlooked.
Hong Kong is known primarily for its financial and real estate sector, which can overshadow the region’s unique positioning for startups.
The mature legal system and a magnetic ability to pull top talent from around the world are two big benefits of Hong Kong-based startups.
Geographically, the area is just 15 minutes away from the “Silicon Valley of China,” Shenzhen. Hong Kong is also one of the most visited city worldwide, making it a prime spot for a travel company to test on home turf first.
So, tell us when you think Klook no longer is/was a startup?
We want to maintain the startup mentality and structure no matter how large the organization grows. This mindset is about continuing to innovate and has a strong survival instinct.
This ensures we always stay ahead and relevant in this fast-changing environment.
Tell us something that you like and dislike about your role as CEO?
I like meeting like-minded people and having them join me in making the Klook dream a reality.
I’m less keen on often having to fly long distances, which can be tough when going through different time zones.
Identify one mistake that you see other travel brands making far more than they should.
Travel brands often sacrifice their scalability by going too niche or by focusing on a singular market. From day one, our vision for Klook was to go global.
Finish the sentence and explain why: “You’d better watch tours and activities even closer than you already are because…”
…the industry is growing beyond just local tours and attractions - the possibility for horizontal expansion is endless.
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